Across the recent three months, 23 analysts have shared their insights on Zscaler ZS, expressing a variety of opinions spanning from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 7 | 9 | 7 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 4 | 6 | 4 | 0 | 0 |
| 2M Ago | 1 | 2 | 3 | 0 | 0 |
| 3M Ago | 2 | 0 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $251.87, a high estimate of $290.00, and a low estimate of $185.00. Observing a 5.73% increase, the current average has risen from the previous average price target of $238.22.
Decoding Analyst Ratings: A Detailed Look
A comprehensive examination of how financial experts perceive Zscaler is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Frederick Havemeyer | Macquarie | Maintains | Outperform | $245.00 | $245.00 |
| Gabriela Borges | Goldman Sachs | Raises | Neutral | $215.00 | $189.00 |
| Shrenik Kothari | Baird | Raises | Outperform | $265.00 | $255.00 |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $270.00 | - |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $290.00 | $285.00 |
| Yi Fu Lee | Cantor Fitzgerald | Lowers | Neutral | $230.00 | $250.00 |
| Saket Kalia | Barclays | Lowers | Overweight | $240.00 | $259.00 |
| Keith Bachman | BMO Capital | Lowers | Outperform | $255.00 | $268.00 |
| Daniel Ives | Wedbush | Raises | Outperform | $260.00 | $250.00 |
| Alex Henderson | Needham | Maintains | Strong Buy | $290.00 | - |
| Peter Weed | Bernstein | Lowers | Outperform | $280.00 | $311.00 |
| Hamza Fodderwala | Morgan Stanley | Raises | Equal-Weight | $214.00 | $195.00 |
| Brian Essex | JP Morgan | Raises | Neutral | $240.00 | $212.00 |
| Ki Bin Kim | Truist Securities | Raises | Buy | $260.00 | $230.00 |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $285.00 | $245.00 |
| Saket Kalia | Barclays | Raises | Overweight | $259.00 | $244.00 |
| Yi Fu Lee | Cantor Fitzgerald | Maintains | Neutral | $250.00 | - |
| Yi Fu Lee | Cantor Fitzgerald | Raises | Neutral | $250.00 | $185.00 |
| Catharine Trebnick | Rosenblatt | Maintains | Buy | $245.00 | - |
| Trevor Walsh | JMP Securities | Raises | Market Outperform | $270.00 | $225.00 |
| Yi Fu Lee | Cantor Fitzgerald | Maintains | Neutral | $185.00 | - |
| Ki Bin Kim | Truist Securities | Raises | Buy | $230.00 | $205.00 |
| Fatima Boolani | Citigroup | Raises | Buy | $265.00 | $235.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zscaler. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zscaler compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Zscaler's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Zscaler's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Zscaler analyst ratings.
About Zscaler
Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.
Zscaler's Economic Impact: An Analysis
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Zscaler's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2024, the company achieved a revenue growth rate of approximately 35.45%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Zscaler's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -5.42%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Zscaler's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.22%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.75%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.29, Zscaler adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Significance of Analyst Ratings Explained
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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